SHW AG (HAM:SW10) Financial Strength: 5 (As of Dec. 2025) — 25% Above Median

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HAM:SW10 SHW AG HAM:SW10
57 GF Score
Price €6.85
GF Value €12.03
Valuation Significantly Undervalued
! 4 Warning Signs
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What is SHW AG Financial Strength?

SHW AG HAM:SW10 57 Financial Strength is 5 as of Dec. 2025, which is 25% above its 10-year median of 4.00. GuruFocus rates HAM:SW10 with a GF Score™ of 57/100 and a GF Value™ of €12.03 (Significantly Undervalued). The stock has 4 warning signs investors should review.

SHW AG has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

SHW AG's Interest Coverage for the quarter that ended in Dec. 2025 was 1.54. SHW AG's debt to revenue ratio for the quarter that ended in Dec. 2025 was 0.28. As of today, SHW AG's Altman Z-Score is 1.98.


SHW AG  (HAM:SW10) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

SHW AG has the Financial Strength Rank of 5.


SHW AG Financial Strength Related Terms


HAM:SW10 vs ORLY, AZO, GPC: Financial Strength Comparison

For the Auto Parts subindustry, SHW AG's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


SHW AG Financial Strength vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, SHW AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where SHW AG's Financial Strength falls into.


HAM:SW10
57GF Score
SHW AG HAM:SW10
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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SHW AG Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

SHW AG's Interest Expense for the months ended in Dec. 2025 was €-9.1 Mil. Its Operating Income for the months ended in Dec. 2025 was €14.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was €117.6 Mil.

SHW AG's Interest Coverage for the quarter that ended in Dec. 2025 is

Interest Coverage=-1*Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*14.007/-9.089
=1.54

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

SHW AG's Debt to Revenue Ratio for the quarter that ended in Dec. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(17.98 + 117.648) / 483.247
=0.28

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

SHW AG has a Z-score of 1.98, indicating it is in Grey Zones. This implies that SHW AG is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.98 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
SHW AG (HAM:SW10) has a Financial Strength of 5 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on SHW AG and its competitors. This is 25% above median its historical median of 4.00. Over the past decade, SHW AG's Financial Strength has ranged from 3.00 to 6.00.
Is SHW AG's Financial Strength too high?
SHW AG's current Financial Strength of 5 is 25% above median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. Overall, SHW AG has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SHW AG's Financial Strength compare to ORLY and AZO?
SHW AG's Financial Strength of 5 can be compared against companies in the Vehicles & Parts industry. Historically, SHW AG's own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Vehicles & Parts company?
A good Financial Strength depends on the Vehicles & Parts industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on SHW AG and its competitors. SHW AG's current Financial Strength is 5, which is 25% above median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SHW AG stock overvalued right now?
Based on GuruFocus' analysis, SHW AG (HAM:SW10) is currently considered Significantly Undervalued. The stock's GF Value™ is €12.03, compared to a current price of €6.85 — trading 43.1% below its estimated fair value. The current Financial Strength is 5, which is 25% above median its 10-year median of 4.00. SHW AG's overall GF Score™ is 57/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For SHW AG (HAM:SW10), the current Financial Strength is 5 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is SHW AG (HAM:SW10) Overvalued in 2026?

Based on GuruFocus' analysis, SHW AG stock appears to be undervalued. The current stock price of €6.85 is trading 43.1% below its estimated GF Value™ of €12.03. GuruFocus considers SHW AG to be Significantly Undervalued.

Key valuation signals for HAM:SW10:

  • Financial Strength: 5 (25% above median its 10-year median of 4.00)
  • GF Value™: €12.03 vs. price of €6.85 (43.1% below fair value)
  • GF Score™: 57/100 with 4 warning signs

No single metric tells the full story. See the HAM:SW10 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


SHW AG Business Description

Address Wilhelmstrasse 111, Aalen, BW, DEU, 73433
SHW AG is a Germany-based developer and manufacturer of a product that contributes to a reduction of fuel consumption and consequently CO2 emissions in the vehicle industry. The company has two operating segments, Pumps, and Engine Components and Brake Disc segment. In its Pumps and engine components business segment SHW develops and produces engine and transmission components for the various area of application. In the Brake Discs business segment, it develops and produces Monobloc, ventilated, cast iron brake discs as well as lightweight brake discs. The company generates the majority of its revenue from the Pumps and engine components business segment.
57GF Score

Get the complete analysis for HAM:SW10

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€6.85
Price
€12.03
GF Value